Which Type of Loyalty Program Should You Choose For You Business?

February 2, 2017 |
Jeff Cohen

Loyalty programs used to be simple. A paper-punch card for your local cafe; a tiered system for your frequent flyer program. However, in today’s digitized world, there are countless loyalty platforms all offering different types of programs, which can make it difficult to differentiate what is most suitable for your business and your customers. This article will explore those issues and identify what type of loyalty program you should incorporate into your business, as well as how this investment will not only create more repeat customers but provide real, tangible benefits into the future.

A successful loyalty program needs to do a few basic things well. These include:

Setting a clear goal for customers to achieve rewards;

Making it simple and convenient, and

Rewarding customers for their day-to-day spending activities.

AppCard, a third generation loyalty, rewards and marketing platform, has helped more than 2,000 businesses set-up a custom and personal rewards program, which suits the needs of the business and their customers. Below, we detail three popular programs that you can incorporate into your business today!

i. Point-based Rewards Program

One of the most popular programs for small, medium and multi-location businesses, a points system ensures that no matter what a customer purchases in store, they will always be rewarded. AppCard can customize the program so customers can earn points for every dollar spent and then set up a unique points catalog where customers can redeem points for discounts or special items. AppCard will even award points automatically to the customer’s account based on the total dollar spent in store!

ii. Tiered Rewards Program

Like an airline tiered system, this program is very successful where you want to reward the lifelong value of your customers. Big box retailers including Kiehl’s and Sephora use this type of program to incentivize established customers and ensure they remain long lasting. Customers who achieve top-tier status wear this as a badge of honor and are far less likely to move to a competitor. AppCard can create for your business, your own unique tiered program where once a customer reaches a certain level, they can receive VIP perks such as greater discounts, more points per dollar spent and even special shopping events!

iii. Digital Punch Card

For a business that wants a basic and simple program, AppCard’s digital punch card is a very effective solution. Provide ‘punches’ to a customer based on certain items they purchase in store or make it broader and create a platform that rewards customers for simply purchasing any item! A punch card is a powerful loyalty tool for businesses that have customers that purchase repeat items – cafes, delis and grocery – as the shoppers behavior is consistent and occurs at a predictive cadence.

Further, you are able to implement multiple loyalty programs within the AppCard system giving you limitless options for creating a unique, simple and effective platform for your customers. If you are unsure on what program would work best for your business, don’t worry – your dedicated Success Manager is an expert who will assist you in setting up the best program!

Loyalty & Marketing

Loyalty programs are effective for incentivizing customers to come in more frequently, but ‘there remain uncertainties, ambiguities, and doubts in the minds of many retailers over whether loyalty programs offer a sustainable and profitable business model’. This uncertainty is due to a number of myths that have been debunked!

When you tie loyalty and marketing together, you have a powerful opportunity to target customers at the right time, with the right offers. Big Box retailers have realized this and are moving quickly to create their own unique loyalty programs. Starbucks is a prime example of the success in creating and launching a loyalty program that was distinct for their customer base. Starbucks understood the need to create a program that rewarded customers but also incentivized them to continue to come into the store time and time again. Because of this, Starbucks’ ‘Rewards, is, thriving, and it just hit a milestone’. Moreover, many more quick service restaurants and multi-location retailers see the value in a rewards program as seen with the introduction of these platforms in Taco Bell, Staples and Foot Locker.

At AppCard, we can create a big box loyalty program, but at a fraction of the price. AppCard uses its patented technology to provide a unique and effective customer experience to ensure you see more repeat customers and a significant return on investment.

About Jeff Cohen

I am the inbound sales manager at AppCard. I manage the process of all inbound inquiries from various lead generation sources. With my entire sales career being in the brick and mortar retail space, my experience helps small business owners build their brand and boost profits.